Aviation & Space

Damage policies do not typically cover anything that comes below the deductible/excess level or malicious acts. Malicious acts can include anything that was intentionally done to cause damage to an aircraft, ranging from pilot suicide to employee sabotage. Insurers have considered the shooting down of an aircraft (even if it wasn’t intentional) to be a malicious act. To cover these, a separate war policy is usually needed.

This is simply the formal name for a property and casualty insurance policy covering damages that affect the physical body of an aircraft.

The coverage line addresses the costs directly stemming from the damage the hull has sustained, as well as the labor necessary to repair the craft. In some (but not all) cases, hull insurance will extend to equipment within the craft that is not affixed to it, such as onboard navigation tools.

This does not cover bodily injury to passengers or any third party damage done by operating the aircraft, as these losses are covered by liability insurance.

Requests for liability limits typically vary from a low of US$5 million to US$100 million or more depending on the exposure. Non-owned aircraft liability insurance provides coverage in the event a corporation becomes legally liable for bodily injury (including passengers) and property damage to third parties as a result of a loss involving a corporation’s or employee’s use of a non-owned aircraft. Liability coverage would be provided to the corporation as long as the aircraft is not partly or wholly owned or registered in the name of the corporation, its subsidiaries, or related parties.

All businesses within the aviation and space industry should consider comprehensive coverage as a cornerstone of effective risk management, including:

• Airlines: Major carriers, flag carriers, regional carriers, and cargo operators.
• Aerospace: Major and component part manufacturers, airports, and service providers.
• General aviation: Helicopter operators, corporate jet owners and operators, private airlines, and non-owned aircraft exposures.
• Space: Commercial satellite and spacecraft owners.
• Banks and financing: Organizations lending and leasing in the sector.

Due to the high risks and costly investments, aviation and space businesses require unique coverage to fully protect all stakeholders and property.

When considering coverage, aviation and space companies need to understand the risks to their own assets and their unique day-to-day operations. However, airlines and general aviation businesses will also need:

• Public liability insurance: This insures anything that could be damaged by a plane, including ground support equipment and airport facilities such as hangars.
• Passenger liability insurance: Passengers are not usually covered by standard public liability insurance, so aircrafts carrying them will need additional coverage. This insures all types of liability claims for individual accidents, including cargo legal liability.
• In-flight insurance: This insurance covers any damage that occurs in flight or on the ground, such as the fallout of natural hazards or accidents while in motion or parked.